- 1 - HC-KAR NC: 2026:KHC:6053 WP No. 2658 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI WRIT PETITION NO.2658 OF 2026 (CS-RES) BETWEEN: SRI SANTOSH OSWALD DSILVA S/O ALEX DSILVA, AGED ABOUT 49 YEARS, RESIDING AT #2-66, “SANTOSH”, LEMINA ROAD NITTE POST, KARKALA TALUK, UDUPI- 574 110. …PETITIONER (BY MS./SMT. ADLENE STEPHANIE MENDES, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, DEPARTMENT OF CO-OPERATION, 1ST FLOOR, VIKASA SOUDHA, DR. B.R. AMBEDKAR VEEDHI, BENGALURU-560 001 REP. BY ITS PRINCIPAL SECRETARY. 2. ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES, DISPUTE PANCHAYAT, THE KARNATAKA STATE CO-OP. URBAN BANKS FEDERATION LTD., REGIONAL OFFICE, NO.9/10, DOLLARS COLONY, GOKUL ROAD, HUBLI-580 030. 3. THE CHIEF EXECUTIVE OFFICER THE BHATKALA URBAN CO-OPERATIVE BANK LTD., Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:6053 WP No. 2658 of 2026 BHATKAL, HEAD QUARTERS BHATKALA, UTTARA KANNADA-581 320. 4. SRI VILAS GOPALAKRISHNA NAYAK S/O PANGALA GOPALAKRISHNA NAYAK AGED ABOUT 42 YEARS, RESIDING AT HANUMAN COMPOUND, VEERA HANUMAN ROAD, CHITPADY, UDUPI-576 101. 5. SRI. P. GOPALAKRISHNA NAYAK S/O SATHYENDRA NAYAK, AGED ABOUT 68 YEARS, RESIDING AT #5-22-99, NEAR HANUMAN TRANSPORT COMPANY, VEERA HANUMAN ROAD, CHITPADY, UDUPI- 576 101. 6. SMT. P. VEENA NAYAK W/O P. GOPALAKRISHNA NAYAK, AGED ABOUT 63 YEARS, RESIDING AT #5-22-99, NEAR HANUMAN TRANSPORT COMPANY, VEERA HANUMAN ROAD, CHITPADY, UDUPI- 576 101. …RESPONDENTS (BY SRI YOGESH D. NAIK, AGA FOR R-1 & R-2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 07/01/2026 PASSED IN APPEAL NO.286/2025 BEFORE THE ADDITIONAL JUDGE, KARNATAKA APPELLATE TRIBUNAL, VIDE ANNEXURE-A, AND ALLOW THE ADMISSION OF APPEAL IN APPEAL NO.286/2025. THIS PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI - 3 - HC-KAR NC: 2026:KHC:6053 WP No. 2658 of 2026 ORAL ORDER The petitioner filed this writ petition seeking the following reliefs: i) Issue a writ of Certiorari to quash the order dated 07/01/2026 passed in Appeal no. 286/2025 before V Additional Judge, Karnataka Appellate Tribunal, vide Annexure-A, and allow the admission of appeal in Appeal no. 286/2025. ii) Issue any other writ, order or direction as this Hon'ble Court deems fit and proper under the facts & circumstances of this case in the interest of justice and equity. 2. Brief facts leading rise to the filing of this petition are as follows: 2.1. Respondent No.3 has raised a dispute before respondent No.2. The said dispute came to be allowed by award dated 08.07.2025. The petitioner, aggrieved by the award passed by respondent No.2, preferred an appeal before the Karnataka Appellate Tribunal (‘Tribunal’ for short) in Appeal No. 286 of 2025. The petitioner filed an application seeking to exempt the petitioner from statutory - 4 - HC-KAR NC: 2026:KHC:6053 WP No. 2658 of 2026 requirement of depositing 25% of the award amount in the impugned award dated 08.07.2025. The Tribunal rejected the said application vide order dated 07.01.2026. Hence, this petition. 3. Heard the arguments of learned Counsel for the petitioner and learned AGA for respondent Nos.1 and 2. 4. Learned Counsel for the petitioner submits that, the petitioner had purchased the property under a registered sale age dated 09.02.2021. She submits that, the vendor of the petitioner, without disclosing regarding the execution of a registered sale deed in favour of the petitioner, applied for sanction of loan. Respondent No.3, without verifying the nil encumbrance, sanctioned the loan in favour of respondent Nos.4 to 6. When the petitioner has not availed the loan, the question of depositing the statutory deposit would not arise. The Tribunal committed an error in rejecting the said application. Hence, on these grounds, she prays to allow the petition. - 5 - HC-KAR NC: 2026:KHC:6053 WP No. 2658 of 2026 5. Per contra, learned AGA supported the impugned order and accordingly, prays to dismiss the writ petition. 6. Perused the records and considered the submissions of the learned counsel for the parties. 7. It is an undisputed fact that respondent No.3 raised a dispute under Section 70 of the Karnataka Co- operative Societies Act, 1959 (‘Act of 1959’ for short). The Registrar has passed the award for recovery of the amount. The petitioner, aggrieved by the award passed by the Registrar, filed an appeal before the Tribunal and also filed an application to dispense with the depositing of 25% of the award amount as statutory deposit. 8. The petitioner has filed an appeal under Section 105 of the Act of 1959. It is a pre-condition that the appellant (petitioner herein) shall deposit 25% of the award amount. The Tribunal considering Section 105 of the Act of 1959, has rightly passed the order. The - 6 - HC-KAR NC: 2026:KHC:6053 WP No. 2658 of 2026 petitioner can deposit 25% of the award amount under protest and if the petitioner succeeds in the appeal, the Tribunal shall refund the same. 9. In view of the above discussion, I proceed to pass the following : ORDER i. The writ petition is dismissed; ii. A liberty is reserved to the petitioner to deposit 25% of the award amount under protest, and if the petitioner succeeds in the appeal, the Tribunal is directed to refund the said amount to the petitioner; iii. Pending application(s) in this petition, if any, shall stand disposed of accordingly. Sd/- (ASHOK S.KINAGI) JUDGE PA List No.: 1 Sl No.: 25